Integration of biogas technology into livestock farming: Study on farmers’ willingness to pay for biodigesters in Madagascar

Substituting fuelwood by biogas contributes to fighting climate change and improving household sanitation in developing countries. However, in Africa, biogas technology is not well integrated into rural households yet and is still in embryonic stage due, among others, to the low purchasing power of farmers. A study was therefore conducted to investigate the farmers' willingness to pay (WTP) for biodigesters in Madagascar using the dichotomous choice question approach of contingent valuation. The results showed that farmers’ WTP were affected significantly and positively by the cost of energy for cooking (probability to accept the bid increased by 0.020), number of dairy cows (0.060), income from agriculture (0.156), off-farm income (0.229), and having experience on borrowing money from bank or microcredit institutions (0.253). However, negative responses were observed related to the increase of biodigester installation cost (probability to accept the bid decreased by 0.023), land area (0.002) and the utilization of manure (0.029). With a constant installment payment plan for a period of 3 years, the average WTP was 18% less than the estimated price of a biodigester upfront cost. Considering the importance of socio-economic characteristics of farmers on biogas integration, the results reported in this study are valuable decision-support tools for government, NGOs, associations, and companies interested in promoting biogas technology in developing countries.